KPMG has invested in Label Insight, which breaks down a product’s attributes in forensic detail, helping reduce risk and drive revenue.
Customers and regulators are demanding more transparency about the products that are bought and sold. That demand isn’t going away. Quite the opposite – it’s likely to become more intense.”
So says Bryan Furlong, Director of Investment Business Operations at KPMG Capital, as he explains why the company has taken an equity stake in Label Insight, a leader in the US$2.3 billion consumer product data market. The company’s proprietary technology enables companies to look beyond basic product information and analyze 13,500 smart attributes, which can help manufacturers:
Furlong says manufacturers need granular knowledge of their product to cope with a fast-changing, complex regulatory environment. Yet such in-depth analysis can also help manufacturers boost revenue. “Some companies find out that they aren’t making claims for their product, for example in terms of health and wellness, they could be making.
Sometimes, the right kind of analysis can give you a new understanding of what’s selling and why. You might look at the attributes of your most popular products and realize that what they have in common is a particular ingredient, like chia. You can then, if you wish, adjust your product formula accordingly.”
The demand to analyze products in such forensic detail is strongest in the US, where the SmartLabel scheme – a QR code shoppers can scan with their phones in store or access later via a tablet or computer – is taking off. The new labels provide instant access to 350 attributes including animal welfare, health claims, social compliance programs, GM ingredients and information about sustainability. America’s Grocery Manufacturers Association predicts that four out of five packaged grocery goods will be using this scheme by the end of 2017.
Label Insight’s first-to-market SmartSPEC system helps brands to participate in the SmartLabel scheme and position themselves as transparent brands customers can trust.
“After some of the challenges we have seen affecting the food and drink industry in recent years, trust has become a critical issue for customers and regulators,” says Furlong. “And with the services offered by Label Insight, we can help companies take the action they need to maintain that trust and protect – or enhance – the value of their brands.”